Xin Lang Cai Jing·2025-06-29 10:36Market Overview - The CITIC Pharmaceutical Index increased by 1.5% during the week of June 23 to June 27, 2025, underperforming the CSI 300 Index by 0.5 percentage points, ranking 24th among CITIC's primary industry classifications [1] - Year-to-date, the CITIC Pharmaceutical and Biotechnology Index has risen by 7.0%, outperforming the CSI 300 Index by 7.3 percentage points, ranking 12th among CITIC's industry classifications [1] - The top five performing stocks for the week were: Shenzhou Cell (+30.5%), Haooubo (+27.1%), Huaren Health (+26.0%), Maiwei Bio (+17.4%), and Nanmo Bio (+16.5%) [1] Industry Insights - The DLBCL market, valued at billions, is seeing the introduction of new ADC drugs, with a focus on Teruisi (a subsidiary of Zhenbao Island) [2] - DLBCL accounts for approximately 30% to 40% of all non-Hodgkin lymphoma cases, with a rapid progression that necessitates quick medical intervention [2] - The first-line treatment, CHOP, has a cure rate of 30-35%, while the introduction of Rituximab marked a significant milestone in DLBCL treatment [2] - Despite advancements, nearly 40% of DLBCL patients remain uncured, prompting a shift towards targeted therapies [2] - The ADC drug, Vebotuzumab, has broken through the long-standing treatment ceiling with the Pola-R-CHP regimen [2] - Teruisi's TRS005, targeting CD20, has received breakthrough therapy designation and is showing promising efficacy signals in early trials [2] Short-term Investment Strategy - The pharmaceutical sector has underperformed the broader market by approximately 0.5 percentage points, attributed to capital flowing into non-financial and technology sectors [3] - The market saw a positive performance in early week driven by innovative drugs, but faced a pullback due to controversies surrounding Rongchang Bio [3] - The National Healthcare Security Administration has issued guidelines for adjusting the basic medical insurance directory, which may expand the payment system for innovative drugs, benefiting future commercialization [3] - Key investment focuses include: 1) Innovation as a long-term theme, emphasizing leading companies and those with business development/data readout catalysts; 2) Identifying companies with strong performance ahead of Q2 earnings [3] Recommended Stocks - Current recommended stocks include: Innovent Biologics, CanSino Biologics, CSPC Pharmaceutical Group, Yunnan Baiyao, and Zhenbao Island [4] - For July, recommended stocks include: Heng Rui Medicine, Innovent Biologics, CanSino Biologics, Kanghong Pharmaceutical, Kangzhe Pharmaceutical, Yunnan Baiyao, Tianan Pharmaceutical, and Linuo Paradice [4]